ITEM 5. 2
CITY MANAGER' SREPORT
JANUARY 13, 2025 CITY COUNCIL REGULAR MEETING
ITEM: COUNCIL TO REVIEW MICROTRANSIT REQUEST FOR
PROPOSAL ( RFP) RESULTS AND PROVIDE
DIRECTION ON TRANSIT SERVICES
RECOMMENDATION: Council to Review Microtransit RFP Results and Provide Direction to Staff on Transit Services
SUMMARY:
Currently, the City of Lathrop does not operate its own intercity transit system, however, intercity public transportation services have been a reoccurring topic brought forth by residents and amongst the Council during past Council meeting comments. In October 2024, at Council' s request, staff developed a student transportation survey that was distributed to parents of Lathrop High School students within the Manteca Unified School District ( MUSD). The results of that survey were presented to the Council at the October 14th meeting, including the option of hiring a transportation consultant to assist with the RFP, results evaluation and overall needs of the project. Staff had issued a Request for Proposals ( RFP) for transportation consultant services; however, staff was directed to forego the transportation consultant route due to cost and timing. Staff was directed to proceed internally and issue a Request for Proposals ( RFP) for transit operations within the City. The RFP was established to make public transit available, but should not be considered full scale transit operations, full scale transit will be developed based on the outcomes and recommendations in the Citywide transit study that is currently underway.
Staff developed and issued an RFP for Microtransit Operations to operate within the City through research and collaboration with multiple outside agencies. The RFP asked respondents to provide a turnkey microtransit service that would run a fixed route in the morning and afternoon as well as an on -demand service during non -fixed route periods. The Microtransit Operations RFP submittal period closed on November 21, 2024. Staff received five proposals from qualified firms, each presented unique solutions and approaches in providing Lathrop residents with public transportation options. During the Council Meeting on December 9, 2024, staff provided a brief update on the RFP' s
closing period and informed Council that staff would continue to evaluate proposals in preparation for the full report to be presented to Council during the January meeting.
Tonight, staff is presenting the results of the Microtansit Operations RFP and requesting Council direction on potential next steps. If Council elects to proceed with one of the RFP respondents, there are two potential scenarios that are available.
Council can direct staff to bring a fully executable agreement to the next regular Council meeting; or in the interest of time, Council may direct staff to proceed with a contract authorizing the City Manager to enter into an agreement with the selected firm up to the amount authorized by Council. In either scenario to proceed a budget adjustment will also be required to fund the startup and operations for the remainder CITY MANAGER' S REPORT PAGE 2
JANUARY 13, 2025, CITY COUNCIL REGULAR MEETING
REVIEW MICROTRANSIT RFP RESULTS AND PROVIDE DIRECTION ON
TRANSIT
of Fiscal Year 2025. Staff proposes an initial one- year contract trial period, which would include additional one- year extensions up to a maximum of five years ensuring performance and budget metrics are met.
BACKGROUND:
Currently, the City of Lathrop does not operate its own intercity transit system, however, intercity public transportation services have been a reoccurring topic brought forth by residents and amongst the Council during past Council meeting comments. In October 2024, staff developed a brief survey that was shared with Lathrop parents to assess transportation needs within the City of Lathrop. City staff worked with Manteca Unified School District ( MUSD) to distribute the survey to parents and guardians of Lathrop High School students.
Survey Details
The survey was titled " School Bus Ridership Survey for Lathrop High School" and was provided in both English and Spanish. The survey introduced the topic to the participants by explaining:
The City of Lathrop is exploring ways to safely transport students who are not given the option of bus transportation to and from school. The City bussing option would provide transportation to students who reside within the City of Lathrop boundaries.
This program would supplement the existing transportation services provided by Manteca Unified for high school students who reside beyond a 2. 5 -mile radius distance measured in air miles) of Lathrop High School in accordance with the District' stransportation board policy. Your response to this survey will assist in evaluating the potential demand and establishment of routes that would service students in the future. Please take a moment to complete the questionnaire regarding your child' stransportation needs. Your participation is greatly appreciated." The survey was pushed out by MUSD through email and was also made available to the public via the City' s social media profiles. The City received 97 responses to the survey and 93 expressed " Yes, my child would ride the bus if it was available". The results of the survey will be provided to MUSD staff to validate the responses received.
Request for Proposal ( RFP)
Staff also concurrently ran a Request for Proposal ( RFP) for a transportation planning consultant that could aide staff in Lathrop High School ( LHS) student transit planning.
The City received one response to the RFP and the responder identified an expedited timeline of three months to complete the first phase of that project. The cost proposal from the responder estimated the first phase task cost of $46, 720. The results of that survey were presented to Council at the October 14th meeting and staff was directed to forego the transportation consultant route and proceed with issuing a Request for Proposals ( RFP) for transit operations within the City. Staff had issued an RFP for CITY MANAGER' S REPORT PAGE 3
JANUARY 13, 2025, CITY COUNCIL REGULAR MEETING
REVIEW MICROTRANSIT RFP RESULTS AND PROVIDE DIRECTION ON
TRANSIT
transportation consultant services but due to cost and timing were directed to proceed internally.
Staff developed an RFP for Microtransit Operations to operate within the City through research and collaboration with multiple outside agencies. The Microtransit Operations RFP opened on October 31, 2024, and closed on November 21, 2024. The RFP solicited proposals from qualified firms or individuals to provide a turnkey Microtransit service. The RFP requested that the Microtransit vehicles run a fixed route in the morning and afternoon, then run as an on -demand service during non - fixed route periods. The RFP requested that respondents play a key role in optimizing the best use to meet the demands of the ridership. The boundaries for the service were defined as the city limits of the City of Lathrop. The goals for the Microtransit Program were as follows:
Provide safe, reliable, and accessible on -demand transportation service Connect areas poorly serviced by transit to key destinations/ ameities Increase awareness of and provide convenient connections to multi -modal and active transportation options
Close first- and last- mile gaps at and around key transit hubs to support regional trips
Maintain a productive, cost- effective, and sustainable Microtransit service Gather data to complement, support, and advance existing and future transit options
Analysis of Proposals Received
Staff received five ( 5) proposals from qualified firms that each present unique approaches to providing residents with a public transportation option. During the Council Meeting on December 9, 2024, staff provided a brief update on the RFP' s closing period and that staff would continue to evaluate proposals in preparation for the full report during the January meeting.
The RFP maintained the City' s
Reservation of Rights stating that: The City may
evaluate the proposals based on the anticipated completion of all or any portion of the Project. The City reserves the right to divide the Project into multiple parts, to reject any and all proposals and re -solicit for new proposals, waive irregularities or minor errors in a proposal, or reject any and all proposals and temporarily or permanently abandon the Project. The City further reserves the right to negotiate different prices, rates, and terms than those offered by any respondent. City makes no representations, written or oral; that it will enter into any form of agreement with any respondent to the RFP for any project and no such representations is intended or should be constructed by the issuance of this RFP.
As stated in the RFP, the City reserves the right to award a contract to a proposing company based on any and all factors of value, whether quantitatively identifiable or not; including, but not limited to, the anticipated initiative and ability of the company to perform the required services set forth in the RFP. The City is not obliged to accept CITY MANAGER' S REPORT PAGE 4
JANUARY 13, 2025, CITY COUNCIL REGULAR MEETING
REVIEW MICROTRANSIT RFP RESULTS AND PROVIDE DIRECTION ON
TRANSIT
the lowest cost proposal and may award a contract in the best interests of the City after all factors have been evaluated. As previously mentioned, the City also has the option of not awarding to any respondent.
Respondent Highlights in Table Below:
r
VIA
Unified
Transit
Escalon Downtowner Fitchburg
RFP
Contents
Business
Location
SubContractors
Complete
New York,
NY
3rd Party
Drivers
Complete
Lathrop, CA
None
30 Min
Yes
4 Complete
Escalon, CA
MTM Transit,
LLC
Complete
West Palm
Beach, FL
None
Complete
Lowell, MA
None
Passenger
Ride Time
30 Min
No
On - Demand
30 Min to
1 Hour
Yes
5 30 Min
No
3 or 4
N/ A
No
2 Job Creation
with Local
Hiring
of Vehicles
Startup Cost
lst Year Cost
Startup + 1st -
Year Cost
82, 000
754, 805
836,05
210, 00
915, 161
1,25,61
660, 00
666, 073
1, 326, 073
34, 984 (3)
40, 753 (4)
N/ A
831, 370 (3)
1, 046, 389 (4)
866, 354 (3)
51, 087, 14214)_
528658
528, 658
As summarized above, staff is presenting the results of the Microtransit Operations RFP and is seeking direction from the Council on potential next steps and actions.
Staff is recommending the City contract with Unified Transit based on their proposed number (#) and type of vehicles being suitable to meet the demands of residents during both fixed route and on -demand portions of the service. Unified Transit' s proposal did not include the use of sub -contractors, allowing the operator to have full discretion over the qualifications and specifications required for employment. The location within the City of Lathrop and the noted preference for local hiring are additional value adds. If Council elects to proceed with one of the RFP respondents, there are two potential scenarios that are available. Council can direct staff to bring a fully executable agreement to the next regular Council meeting; or in the interest of time, Council may direct staff to proceed with a contract authorizing the City Manager to enter into an agreement with the selected firm up to the amount authorized by Council. In either scenario to proceed a budget adjustment will also be required to fund the startup and operations for the remainder of Fiscal Year 2025.
Funding Proposed
The City receives approximately $ 500, 00 annually in local transportation funding from SJCOG. Staff has also identified $ 411, 000 in one- time funding that is currently set aside in the Measure C Fund for transit. Some revenue is anticipated to be CITY MANAGER' SREPORT PAGE 5
JANUARY 13, 2025, CITY COUNCIL REGULAR MEETING
REVIEW MICROTRANSIT RFP RESULTS AND PROVIDE DIRECTION ON
TRANSIT
collected through fares charged to riders. These fares would be used to offset expenses associated with the operations of a transit system. The City currently has received approximately $ 1, 800, 000 in transit funds from SJCOG from prior Fiscal Years and has been setting them aside in anticipation of establishing public transit within the City.
REASON FOR RECOMMENDATION:
Currently, the City of Lathrop does not operate its own intercity transit system, however, public transportation services have been a reoccurring topic brought forth by residents and amongst the Council during past Council meeting comments. The majority of the cities in the San Joaquin County currently operate their own intercity transit system. Additionally, there are some funding opportunities that exist for these services, and in order to be eligible for these funds, the City must be its own transit provider. Staff is recommending Unified Transit due to the overall value and ability to startup operations via the timing identified in their proposal.
FISCAL IMPACT:
The fiscal impact will vary drastically based on the direction provided by Council. The City has received approximately $ 1, 800, 000 in transit funds from SJCOG. The use of these funds is restricted to specific categories for transportation purposes. Staff has also identified $ 411, 000 that has been set aside in Measure C Fund balance reserves for transportation purposes. The combination of these funds could operate the program through an initial one- year contract trial period. Staff proposes to include additional one- year extensions up to a maximum of five years ensuring performance and budget metrics are met. Staff will continue to seek out additional funding sources to sustain the program in future fiscal years.
Staff will proceed with Council direction, a budget amendment will need to accompany the direction to fund the program if desired.
ATTACHMENTS:
A. Resolution
CITY MANAGER' S REPORT PAGE 6
JANUARY 13, 2025, CITY COUNCIL REGULAR MEETING
REVIEW MICROTRANSIT RFP RESULTS AND PROVIDE DIRECTION ON
TRANSIT
APPROVALS
q/ Zo2ir
Thomas Hedegard Date
Deputy City Manager
Salvador Navarrete Date
City Attorney
Stephen Salvatore Date
City Manager
RESOLUTION NO. 25 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO REVIEW
MICROTRANSIT REQUEST FOR PROPOSAL ( RFP) RESULTS AND PROVIDE
DIRECTION ON TRANSIT SERVICES
WHEREAS, the City of Lathrop does not operate its own intercity transit system, however, intercity public transportation services have been a reoccurring topic brought forth by residents and amongst the Council during past Council meeting comments; and
WHEREAS, in October 2024, at Council' srequest, staff developed a student transportation survey that was distributed to parents of Lathrop High School students within the Manteca Unified School District ( MUSD). The results of that survey were presented to the Council at the October 14th meeting, including the option of hiring a transportation consultant to assist with the RFP, results evaluation and overall needs of the project. Staff had issued a Request for Proposals ( RFP) for transportation consultant services; however, staff was directed to forego the transportation consultant route due to cost and timing; and
WHEREAS, staff developed and issued an RFP for Microtransit Operations to operate within the City through research and collaboration with multiple outside agencies. The RFP asked respondents to provide a turnkey microtransit service that would run a fixed route in the morning and afternoon as well as an on -demand service during non -fixed route periods; and
WHEREAS, the Microtransit Operations RFP submittal period closed on November 21, 2024. Staff received five proposals from qualified firms, each presented unique solutions and approaches in providing Lathrop residents with public transportation options. During the Council Meeting on December 9, 2024, staff provided a brief update on the RFP' sclosing period and informed Council that staff would continue to evaluate proposals in preparation for the full report to be presented to Council during the January meeting; and
WHEREAS, the RFP requested that respondents play a key role in optimizing the best use to meet the demands of the ridership. The boundaries for the service were defined as the city limits of the City of Lathrop. The goals for the Microtransit Program were as follows:
Provide safe, reliable, and accessible on -demand transportation service Connect areas poorly serviced by transit to key destinations/ ameities Increase awareness of and provide convenient connections to multi - modal and active transportation options
Close first- and last- mile gaps at and around key transit hubs to support regional trips
Maintain a productive, cost- effective, and sustainable Microtransit service
Gather data to complement, support, and advance existing and future transit options; and
WHEREAS, the RFP maintained the City' s
Reservation of Rights stating that:
The City may evaluate the proposals based on the anticipated completion of all or any portion of the Project. The City reserves the right to divide the Project into multiple parts, to reject any and all proposals and re -solicit for new proposals, waive irregularities or minor errors in a proposal, or reject any and all proposals and temporarily or permanently abandon the Project. The City further reserves the right to negotiate different prices, rates, and terms than those offered by any respondent.
City makes no representations, written or oral; that it will enter into any form of agreement with any respondent to the RFP for any project and no such representations is intended or should be constructed by the issuance of this RFP; and WHEREAS, the City is not obliged to accept the lowest cost proposal and may award a contract in the best interests of the City after all factors have been evaluated; and
WHEREAS, the RFP Respondent Highlights in Table Below:
VIA
Unified
Transit
Escalon Downtowner Fitchburg
RFP
Complete Contents
Business New York,
Location NY
Sub- 3rd Party
Contractors Drivers
Passenger
Ride Time
Job Creation
with Local
Hiring
of Vehicles ! On - Demand
Startup Cost
1st Year Cost
Startup + 1st
Year Cost
and
30 Min
Complete Complete
Lathrop, CA ! Escalon, CA
MTM Transit,
LLC
30 Min to
1 Hour
None
30 Min
No Yes
82, 000
754, 805
836,05 I
4 210, 00
915, 161
1,25,61
Yes
660, 00
666, 073
1, 326, 073
Complete
West Palm
Beach, FL
None
30 Min
No
3 or 4
34, 984 (3)
40, 753 (4)
831, 370 (3)
110461389 ( 4)
866, 354 (3)
1, 087, 142 (4)
Complete
Lowell, MA
None
N/ A
2 N/ A
528, 658
528, 658
WHEREAS, staff is presenting the results of the Microtransit Operations RFP and is seeking direction from the Council on potential next steps and actions; and WHEREAS, staff is recommending the City contract with Unified Transit based on their proposed number (#) and type of vehicles being suitable to meet the demands of residents during both fixed route and on -demand portions of the service.
Unified Transit' s proposal did not include the use of sub -contractors, allowing the operator to have full discretion over the qualifications and specifications required for employment. The location within the City of Lathrop and the noted preference for local hiring are additional value adds; and
WHEREAS, the City receives approximately $ 500, 00 annually in local transportation funding from SJCOG. Staff has also identified $ 411, 000 in one- time funding that is currently set aside in the Measure C Fund for transit. Some revenue is anticipated to be collected through fares charged to riders. These fares would be used to offset expenses associated with the operations of a transit system. The City currently has received approximately $ 1, 800, 000 in transit funds from SJCOG from prior Fiscal Years and has been setting them aside in anticipation of establishing public transit within the City; and
WHEREAS, staff will proceed with Council direction, a budget amendment will need to accompany the direction to fund the program if desired:
Increase Appropriation
FUND -Expenditure Account $ Council Authorized
and
WHEREAS, staff proposes an initial one- year contract trial period, which would include additional one- year extensions up to a maximum of five years ensuring performance and budget metrics are met.
NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of Lathrop selects one of the RFP respondents, with options detailed below:
Option A: Council can direct staff to bring a fully executable agreement to the next regular Council meeting; or
Option B: Or in the interest of time, Council may direct staff to proceed with a contract authorizing the City Manager to enter into an agreement with the selected firm up to the amount authorized by Council; and
NOW, THEREFORE, BE IT FURTHER RESOLVED, the City Council of the City of Lathrop does hereby approve a budget amendment for an amount not to exceed the option directed.
The foregoing resolution was passed and adopted this 13th day of January, 2025, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Paul Akinjo, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney